FAA Funding Woes In the States & Ancillary Fees


There was an interesting piece on the NY Times about unintended (or maybe it is intended) casualty of the airline ancillary fees in the United States that is the FAA. You can access this article here. I wrote a piece about airlines’ love affair with fuel surcharges that you can access here.


The airline tickets are subject to 7.5% Federal Excise Tax that is collected on the airfare and used to fund the FAA. The recent change, how the airlines price tickets (more fees), has had an effect on the FAA funding. The ancillary fees like baggage, food, drinks, premium seats, premium boarding etc. are not taxed at all.

According to the article, if the airlines had just raised the ticket price by $20, this would have brought in a billion dollars last year alone to fund the FAA.


The government mandated fees for air travel are on the raise in the United States, although they are nowhere near as high as they are in Europe.

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